Glassnode senior research has dismissed the theory that Bitcoin’s price is related to the US dollar or any other large economy.
No Structural Link Between Bitcoin & Money Supply Of Major Economies
It’s a brand new world post on X, Glassnode senior researcher CryptoVizArt.₿ has talked about the Correlation between Bitcoin and the money supplies of the Group of Seven (G7) economies. The “Correlation”This is an indicator which measures the degree of closeness between two assets.
This means that when the value is positive the movement of the asset price is in the opposite direction. Closer the indicator comes to 1, the more significant the relationship.
The indicator is below the zero point, which indicates a negative correlation. This means that they move in opposite directions. At -1, this behavior is strongest.
The charts below are provided by the analyst and show the relationship between Bitcoins and the Money Supply of each G7 Nation over a rolling period of 90 days:
As is visible in the graphs, the Correlation between Bitcoin and the money supplies of seven of the world’s largest economies has swung wildly over the years. There are many times when periods of high values for the metric follow by phases of low or neutral values, and there is no obvious macroeconomic cause behind this shift.
“Bitcoin’s correlation with US M2 or other major economies’ money supplies demonstrates no consistent or predictive pattern,”Glassnode’s researcher makes this observation. The same is also true in a longer-term perspective through a rolling 180-day window.
“Despite frequent claims of a stable linkage, the data suggest the relationship is largely stochastic rather than structural,”CryptoVizArt. This pattern suggests that Bitcoin’s growth is not solely dependent on the global economy.
In an older X postAnalysts shared their findings on the correlation of 180 days between Bitcoin and 2 other currencies. traditional assets: Gold and S&P 500.
From the topmost chart, it’s visible that Gold and Bitcoin have seen their 180-day Correlation stand at a neutral level most recently, indicating that the two have pretty much been moving independently of each other. Meanwhile, the second graph shows a notable positive value for the metric between S&P 500 and BTC, implying the cryptocurrency has been moving in tandem with stocks to some degree.
BTC Price
Bitcoin reached a price of $122,000 over the weekend. However, it appears the asset is now retracing as the value has fallen back to $119,000.
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Source: www.newsbtc.com
